Floor & Decor Holdings, Inc.

Welcome to Floor & Decor Holdings Inc. Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. It's being recorded. It is now my pleasure to introduce your host, Wayne Hood, Vice President of Investor Relations. Thank you. You may begin.

Thank you, Operator, and good afternoon, everyone. Joining me on our earnings conference call today are Tom Taylor, Chief Executive Officer, Lisa Lobby, President, and Trevor Lang, Executive Vice President and Chief Financial Officer. Before we get started, I would like to remind everyone of the company's safe harbor language. Comments made during this conference call and webcast contains forward-looking statements within the meeting of the Private Securities Litigation Reform Act of 1995 that are subject to risk and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement. The company's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed and its SEC filings. Foreign decor assumes no obligation to update any such forward-looking statements. Please also note that past performance or market information is not a guarantee of future results. During this conference call, the company will discuss non-GAAP financial measures as defined by the SEC Regulation G. We believe non-GAAP disclosures enable investors to better understand our core operating performance on a comparable basis between periods. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure can be found in the earnings press release, which is available on our investor relations website at ir.fornedecor.com. A recorded replay of this call, together with related materials, will be available on our investor relations website. Let me now turn the call over to Tom.

Thank you, Wayne, and thanks to everyone for joining us on our second quarter 2020 earnings conference call. On today's call, I will discuss some of the highlights of our second quarter 2020 earnings results and then discuss how we are positioned to further grow our market share of the estimated $22 billion hard surface flooring industry in 2020 and beyond. Trevor will then discuss our second quarter results in more detail and how we are thinking about the second half of 2020. Looking back over the past several months, I am glad we made the voluntary decision to close our stores to the public in late March and pivot to curbside pickup only as the COVID-19 pandemic was escalating. This time allowed us to make numerous changes in safety protocols and to implement public health care guidelines that are essential to making our stores safer in the current environment. We believe our large 76,000 square foot stores with nine to 15 foot wide aisles uniquely position us in the market. Add to that the millions we have spent on personal protective equipment, plexiglass separation, training, and taking care of our affected associates with COVID-19 pay, and we believe our teams have done an excellent job creating a safer environment for our pro and do-it-yourself customers. It is obvious that COVID-19 is not going away anytime soon. But all the changes we have implemented gives me confidence we can operate in a much safer store environment as long as COVID-19 is with us. Because of the pandemic, people are spending a lot more time in their homes and not spending as much on travel, eating out, and other entertainment. The combination of these two phenomenas has people investing in their homes. Floor Decor is in a great position to serve them with visually inspiring stores and websites, innovative assortments, everyday low prices, and in-stock job lock quantities as consumers search for the best value in current trends. Also, our aggressive efforts to lower costs in the short term, along with adding $75 million of additional term B loan, the majority, which is not due until 2027, has fortified an already strong balance sheet, and we now have the best liquidity in our company's history. This positions us to withstand this period of uncertainty while at the same time continuing to make important investments to support our long-term growth